PerkinElmer Announces Financial Results for the Third Quarter of 2022
- Third quarter revenue of $712 million; (17)% reported growth
- Pro forma* total revenue of $1,033 million; 9% pro forma non-COVID organic growth
- Third quarter GAAP EPS from continuing operations of $0.55; pro forma adjusted EPS of $1.51
- Initiates fourth quarter and updates full year pro forma guidance
WALTHAM, Mass.–(BUSINESS WIRE)–PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the third quarter ended October 2, 2022.
The Company reported GAAP earnings per share from continuing operations of $0.55, as compared to GAAP earnings per share from continuing operations of $0.94 in the same period a year ago. GAAP revenue for the quarter was $712 million, as compared to $861 million in the same period a year ago. GAAP operating income from continuing operations for the quarter was $111 million, as compared to $196 million for the same period a year ago. GAAP operating profit margin was 15.6% as a percentage of revenue, as compared to 22.7% in the same period a year ago.
Adjusted operating income from continuing operations was $224 million, as compared to $322 million for the same period a year ago. Adjusted operating profit margin was 31.4% as a percentage of revenue, as compared to 37.4% in the same period a year ago.
Pro forma adjusted earnings per share for the quarter was $1.51, as compared to $2.31 in the same period a year ago. Pro forma adjusted revenue for the quarter was $1.03 billion, as compared to $1.17 billion in the same period a year ago. Pro forma adjusted operating income for the quarter was $272 million, as compared to $359 million for the same period a year ago. Pro forma adjusted operating profit margin was 26.3% as a percentage of adjusted revenue, as compared to 30.8% in the same period a year ago.
Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations.
*Pro forma information includes results from the Applied, Food and Enterprise Services (“AES”) businesses currently held for sale.
“It was great to see how we continued to execute at a high level across the company in the quarter, both operationally and financially,” said Prahlad Singh, president and chief executive officer of PerkinElmer. “The energy and excitement amongst our employees in all our businesses remains exceptional as we continue to prepare for the upcoming split into two separate companies. I am proud to see the impact our efforts are having on society and how we accomplish this each day.”
Financial Overview by Reporting Segment for the Third Quarter
Discovery & Analytical Solutions Continuing Operations
- Third quarter 2022 revenue was $313 million, as compared to $208 million in the same period a year ago. Reported revenue increased 51% and organic revenue increased 14% as compared to the same period a year ago.
- Third quarter 2022 operating income from continuing operations was $33 million, as compared to $(19) million for the same period a year ago.
- Third quarter 2022 adjusted operating income was $117 million, as compared to $58 million for the same period a year ago.
Discovery & Analytical Solutions Pro Forma* Operations
- Third quarter 2022 pro forma revenue was $633 million, as compared to $513 million in the same period a year ago. Pro forma revenue increased 23% and pro forma organic revenue increased 12% as compared to the same period a year ago.
- Third quarter 2022 pro forma operating income was $58 million, as compared to $7 million for the same period a year ago.
- Third quarter 2022 pro forma adjusted operating income was $165 million, as compared to $95 million for the same period a year ago.
Diagnostics
- Third quarter 2022 revenue was $399 million, as compared to $654 million for the same period a year ago. Reported revenue decreased 39% and organic revenue decreased 33% as compared to the same period a year ago.
- Third quarter 2022 operating income from continuing operations was $95 million, as compared to $238 million for the same period a year ago.
- Third quarter 2022 adjusted operating income was $123 million, as compared to $287 million for the same period a year ago.
Initiates Fourth Quarter and Updates Full Year 2022 Guidance
For the fourth quarter of 2022, the Company forecasts total revenue from continuing operations of $0.73 billion. Pro forma total revenue is expected to be in a range of approximately $1.06-$1.07 billion and pro forma adjusted earnings per share are expected to be in a range $1.65-$1.67.
For the full year 2022, the Company now forecasts total revenue from continuing operations of $3.30 billion. Pro forma total revenue is expected to be in the range of approximately $4.59-$4.60 billion and pro forma adjusted earnings per share are expected to be in a range of $7.89-$7.91.
The Company’s guidance for the fourth quarter and full year with respect to non-GAAP metrics cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP.
Webcast Information
The Company will discuss its third quarter 2022 results and its outlook for business trends during a webcast on November 8, 2022, at 8:00 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, www.perkinelmer.com.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.
Factors Affecting Future Performance
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as “believes,” “intends,” “anticipates,” “plans,” “expects,” “estimates”, “projects,” “forecasts,” “will” and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management’s current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) the effect of the COVID-19 pandemic on our sales and operations; (3) fluctuations in the global economic and political environments; (4) our failure to introduce new products in a timely manner; (5) our ability to execute acquisitions and divestitures, such as the divestiture of the Applied, Food and Enterprise Services businesses, license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (6) our ability to compete effectively; (7) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (8) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (9) disruptions in the supply of raw materials and supplies; (10) our ability to retain key personnel; (11) significant disruption in our information technology systems, or cybercrime; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) regulatory changes; (18) our failure to comply with healthcare industry regulations; (19) economic, political and other risks associated with foreign operations; (20) the United Kingdom’s withdrawal from the European Union; (21) our ability to obtain future financing; (22) restrictions in our credit agreements; (23) discontinuation or replacement of LIBOR; (24) significant fluctuations in our stock price; (25) reduction or elimination of dividends on our common stock; and (26) other factors which we describe under the caption “Risk Factors” in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
About PerkinElmer
PerkinElmer is a leading, global provider of end-to-end solutions that help scientists, researchers and clinicians better diagnose disease, discover new and more personalized drugs, monitor the safety and quality of our food, and drive environmental and applied analysis excellence. With an 85-year legacy of advancing science and a mission of innovating for a healthier world, our dedicated team of more than 16,000 collaborates closely with commercial, government, academic and healthcare customers to deliver reagents, assays, instruments, automation, informatics and strategic services that accelerate workflows, deliver actionable insights and support improved decision making. We are also deeply committed to good corporate citizenship through our dynamic ESG and sustainability programs. The Company reported revenues of approximately $5 billion in 2021, serves customers in 190 countries, and is a component of the S&P 500 index. Additional information is available at www.perkinelmer.com. Follow PerkinElmer on LinkedIn, Twitter, Facebook, Instagram, and YouTube.
| PerkinElmer, Inc. and Subsidiaries | ||||||||||||||||||
| CONDENSED CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
| (In thousands, except per share data) |
October 2, 2022 |
October 3, 2021 |
October 2, 2022 |
October 3, 2021 |
||||||||||||||
| Revenue |
$ |
711,803 |
|
$ |
861,316 |
|
$ |
2,570,608 |
|
$ |
2,799,898 |
|
||||||
| Cost of revenue |
|
304,759 |
|
|
338,454 |
|
|
1,017,108 |
|
|
1,009,707 |
|
||||||
| Selling, general and administrative expenses |
|
239,969 |
|
|
275,869 |
|
|
765,746 |
|
|
681,311 |
|
||||||
| Research and development expenses |
|
53,521 |
|
|
49,421 |
|
|
167,081 |
|
|
139,753 |
|
||||||
| Restructuring and other, net |
|
2,774 |
|
|
2,011 |
|
|
15,443 |
|
|
10,517 |
|
||||||
| Operating income from continuing operations |
|
110,780 |
|
|
195,561 |
|
|
605,230 |
|
|
958,610 |
|
||||||
| Interest income |
|
(667 |
) |
|
(544 |
) |
|
(2,024 |
) |
|
(1,322 |
) |
||||||
| Interest expense |
|
25,931 |
|
|
43,531 |
|
|
81,447 |
|
|
74,407 |
|
||||||
| Change in fair value of financial securities |
|
5,106 |
|
|
19,365 |
|
|
14,321 |
|
|
(8,566 |
) |
||||||
| Other (income) expense, net |
|
(1,732 |
) |
|
(1,803 |
) |
|
(1,904 |
) |
|
(9,787 |
) |
||||||
| Income from continuing operations, before income taxes |
|
82,142 |
|
|
135,012 |
|
|
513,390 |
|
|
903,878 |
|
||||||
| Provision for income taxes |
|
12,634 |
|
|
27,381 |
|
|
98,211 |
|
|
198,531 |
|
||||||
| Income from continuing operations |
|
69,508 |
|
|
107,631 |
|
|
415,179 |
|
|
705,347 |
|
||||||
| Income from discontinued operations, before income taxes |
|
25,180 |
|
|
26,656 |
|
|
36,004 |
|
|
64,329 |
|
||||||
| Provision for income taxes on discontinued operations and dispositions |
|
9,341 |
|
|
6,549 |
|
|
9,662 |
|
|
16,703 |
|
||||||
| Income from discontinued operations and dispositions |
|
15,839 |
|
|
20,107 |
|
|
26,342 |
|
|
47,626 |
|
||||||
| Net income |
$ |
85,347 |
|
$ |
127,738 |
|
$ |
441,521 |
|
$ |
752,973 |
|
||||||
| Diluted earnings per share: | ||||||||||||||||||
| Income from continuing operations |
$ |
0.55 |
|
$ |
0.94 |
|
$ |
3.28 |
|
$ |
6.23 |
|
||||||
| Income from discontinued operations and dispositions |
|
0.13 |
|
|
0.17 |
|
|
0.21 |
|
|
0.42 |
|
||||||
| Net income |
$ |
0.67 |
|
$ |
1.11 |
|
$ |
3.49 |
|
$ |
6.65 |
|
||||||
| Weighted average diluted shares of common stock outstanding |
|
126,540 |
|
|
115,022 |
|
|
126,544 |
|
|
113,307 |
|
||||||
| ABOVE PREPARED IN ACCORDANCE WITH GAAP | ||||||||||||||||||
| Additional Supplemental Information (1): | ||||||||||||||||||
| (per share, continuing operations) | ||||||||||||||||||
| GAAP EPS from continuing operations |
$ |
0.55 |
|
$ |
0.94 |
|
$ |
3.28 |
|
$ |
6.23 |
|
||||||
| Amortization of intangible assets |
|
0.72 |
|
|
0.55 |
|
|
2.22 |
|
|
1.40 |
|
||||||
| Gain from debt extinguishment |
|
(0.00 |
) |
|
– |
|
|
(0.00 |
) |
|
– |
|
||||||
| Purchase accounting adjustments |
|
0.08 |
|
|
0.09 |
|
|
0.36 |
|
|
0.17 |
|
||||||
| Acquisition and divestiture-related costs |
|
0.07 |
|
|
0.61 |
|
|
0.20 |
|
|
0.64 |
|
||||||
| Change in fair value of financial securities |
|
0.04 |
|
|
0.17 |
|
|
0.11 |
|
|
(0.08 |
) |
||||||
| Asset impairment |
|
– |
|
|
0.03 |
|
|
– |
|
|
0.03 |
|
||||||
| Significant litigation matters and settlements |
|
0.00 |
|
|
– |
|
|
(0.00 |
) |
|
– |
|
||||||
| Disposition of businesses and assets, net |
|
– |
|
|
(0.02 |
) |
|
– |
|
|
(0.02 |
) |
||||||
| Restructuring and other, net |
|
0.02 |
|
|
0.02 |
|
|
0.12 |
|
|
0.09 |
|
||||||
| Tax on above items |
|
(0.24 |
) |
|
(0.31 |
) |
|
(0.77 |
) |
|
(0.49 |
) |
||||||
| Significant tax items |
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.03 |
) |
|
0.12 |
|
||||||
| Adjusted EPS from Continuing Operations |
$ |
1.21 |
|
$ |
2.07 |
|
$ |
5.50 |
|
$ |
8.10 |
|
||||||
| Adjusted EPS from AES |
$ |
0.30 |
|
$ |
0.24 |
|
$ |
0.75 |
|
$ |
0.74 |
|
||||||
| Pro Forma Adjusted EPS including the results of AES |
$ |
1.51 |
|
$ |
2.31 |
|
$ |
6.24 |
|
$ |
8.84 |
|
||||||
| (1) amounts may not sum due to rounding | ||||||||||||||||||
| PerkinElmer, Inc. and Subsidiaries | ||||||||||||||||||
| REVENUE AND OPERATING INCOME (LOSS) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (In thousands, except percentages) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||
| DAS | Reported revenue | $ |
312,783 |
|
$ |
207,511 |
|
$ |
945,484 |
|
$ |
577,371 |
|
|||||
| Purchase accounting adjustments |
– |
|
– |
|
– |
|
1,849 |
|
||||||||||
| Adjusted revenue |
312,783 |
|
207,511 |
|
945,484 |
|
579,220 |
|
||||||||||
| Reported operating income (loss) from continued operations |
32,631 |
|
(19,263 |
) |
106,005 |
|
50,624 |
|
||||||||||
| OP% |
10.4 |
% |
-9.3 |
% |
11.2 |
% |
8.8 |
% |
||||||||||
| Amortization of intangible assets |
64,426 |
|
25,757 |
|
185,094 |
|
50,903 |
|
||||||||||
| Purchase accounting adjustments |
9,164 |
|
5,673 |
|
43,710 |
|
9,322 |
|
||||||||||
| Acquisition and divestiture-related costs |
8,475 |
|
44,409 |
|
11,746 |
|
46,498 |
|
||||||||||
| Significant litigation matters and settlements |
629 |
|
– |
|
(632 |
) |
– |
|
||||||||||
| Restructuring and other, net |
1,556 |
|
1,424 |
|
11,738 |
|
6,867 |
|
||||||||||
| Adjusted operating income |
116,881 |
|
58,000 |
|
357,661 |
|
164,214 |
|
||||||||||
| Adjusted OP% |
37.4 |
% |
28.0 |
% |
37.8 |
% |
28.4 |
% |
||||||||||
| Diagnostics | Reported revenue |
399,020 |
|
653,805 |
|
1,625,124 |
|
2,222,527 |
|
|||||||||
| Purchase accounting adjustments |
203 |
|
199 |
|
609 |
|
597 |
|
||||||||||
| Adjusted revenue |
399,223 |
|
654,004 |
|
1,625,733 |
|
2,223,124 |
|
||||||||||
| Reported operating income from continued operations |
94,654 |
|
237,903 |
|
553,898 |
|
965,650 |
|
||||||||||
| OP% |
23.7 |
% |
36.4 |
% |
34.1 |
% |
43.4 |
% |
||||||||||
| Amortization of intangible assets |
27,099 |
|
37,517 |
|
95,375 |
|
107,743 |
|
||||||||||
| Purchase accounting adjustments |
457 |
|
5,107 |
|
1,884 |
|
9,485 |
|
||||||||||
| Asset impairment |
– |
|
3,868 |
|
– |
|
3,868 |
|
||||||||||
| Acquisition and divestiture-related costs |
– |
|
2,023 |
|
14,119 |
|
7,833 |
|
||||||||||
| Restructuring and other, net |
1,218 |
|
587 |
|
3,705 |
|
3,650 |
|
||||||||||
| Adjusted operating income |
123,428 |
|
287,005 |
|
668,981 |
|
1,098,229 |
|
||||||||||
| Adjusted OP% |
30.9 |
% |
43.9 |
% |
41.1 |
% |
49.4 |
% |
||||||||||
| Corporate | Reported operating loss |
(16,505 |
) |
(23,079 |
) |
(54,673 |
) |
(57,664 |
) |
|||||||||
| Continuing Operations | Reported revenue | $ |
711,803 |
|
$ |
861,316 |
|
$ |
2,570,608 |
|
$ |
2,799,898 |
|
|||||
| Purchase accounting adjustments |
203 |
|
199 |
|
609 |
|
2,446 |
|
||||||||||
| Adjusted revenue |
712,006 |
|
861,515 |
|
2,571,217 |
|
2,802,344 |
|
||||||||||
| Reported operating income from continued operations |
110,780 |
|
195,561 |
|
605,230 |
|
958,610 |
|
||||||||||
| OP% |
15.6 |
% |
22.7 |
% |
23.5 |
% |
34.2 |
% |
||||||||||
| Amortization of intangible assets |
91,525 |
|
63,274 |
|
280,469 |
|
158,646 |
|
||||||||||
| Purchase accounting adjustments |
9,621 |
|
10,780 |
|
45,594 |
|
18,807 |
|
||||||||||
| Acquisition and divestiture-related costs |
8,475 |
|
46,432 |
|
25,865 |
|
54,331 |
|
||||||||||
| Asset impairment |
– |
|
3,868 |
|
– |
|
3,868 |
|
||||||||||
| Significant litigation matters and settlements |
629 |
|
– |
|
(632 |
) |
– |
|
||||||||||
| Restructuring and other, net |
2,774 |
|
2,011 |
|
15,443 |
|
10,517 |
|
||||||||||
| Adjusted operating income | $ |
223,804 |
|
$ |
321,926 |
|
$ |
971,969 |
|
$ |
1,204,779 |
|
||||||
| Adjusted OP% |
31.4 |
% |
37.4 |
% |
37.8 |
% |
43.0 |
% |
||||||||||
| REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP | ||||||||||||||||||
| PerkinElmer, Inc. and Subsidiaries | ||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (In thousands, except percentages) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||
| DAS | Reported revenue | $ |
312,783 |
|
$ |
207,511 |
|
$ |
945,484 |
|
$ |
577,371 |
|
|||||
| Purchase accounting adjustments |
– |
|
– |
|
– |
|
1,849 |
|
||||||||||
| Adjusted revenue |
312,783 |
|
207,511 |
|
945,484 |
|
579,220 |
|
||||||||||
| Reported operating income from continued operations |
32,631 |
|
(19,263 |
) |
106,005 |
|
50,624 |
|
||||||||||
| OP% |
10.4 |
% |
-9.3 |
% |
11.2 |
% |
8.8 |
% |
||||||||||
| Amortization of intangible assets |
64,426 |
|
25,757 |
|
185,094 |
|
50,903 |
|
||||||||||
| Purchase accounting adjustments |
9,164 |
|
5,673 |
|
43,710 |
|
9,322 |
|
||||||||||
| Acquisition and divestiture-related costs |
8,475 |
|
44,409 |
|
11,746 |
|
46,498 |
|
||||||||||
| Significant litigation matters and settlements |
629 |
|
– |
|
(632 |
) |
– |
|
||||||||||
| Restructuring and other, net |
1,556 |
|
1,424 |
|
11,738 |
|
6,867 |
|
||||||||||
| Adjusted operating income |
116,881 |
|
58,000 |
|
357,661 |
|
164,214 |
|
||||||||||
| Adjusted OP% |
37.4 |
% |
28.0 |
% |
37.8 |
% |
28.4 |
% |
||||||||||
| AES Discontinued Operations | Revenue in Discontinued Ops |
320,616 |
|
305,369 |
|
950,822 |
|
902,946 |
|
|||||||||
| Reported operating income in discontinued operations |
25,389 |
|
26,409 |
|
36,642 |
|
63,624 |
|
||||||||||
| OP% |
7.9 |
% |
8.6 |
% |
3.9 |
% |
7.0 |
% |
||||||||||
| Amortization of intangible assets |
2,387 |
|
7,680 |
|
16,984 |
|
26,026 |
|
||||||||||
| Acquisition and divestiture-related costs |
22,026 |
|
2,651 |
|
47,042 |
|
15,066 |
|
||||||||||
| Restructuring and other, net |
486 |
|
200 |
|
13,131 |
|
2,501 |
|
||||||||||
| Pro-Forma deprecation on assets held for sale |
(2,363 |
) |
– |
|
(2,363 |
) |
– |
|
||||||||||
| Adjusted operating income of AES |
47,925 |
|
36,940 |
|
111,436 |
|
107,217 |
|
||||||||||
| Adjusted OP% |
14.9 |
% |
12.1 |
% |
11.7 |
% |
11.9 |
% |
||||||||||
| Pro Forma DAS | Revenue including AES |
633,399 |
|
512,880 |
|
1,896,306 |
|
1,480,317 |
|
|||||||||
| Purchase accounting adjustments |
– |
|
– |
|
– |
|
1,849 |
|
||||||||||
| Adjusted revenue including AES |
633,399 |
|
512,880 |
|
1,896,306 |
|
1,482,166 |
|
||||||||||
| Operating income including AES |
58,020 |
|
7,146 |
|
142,647 |
|
114,248 |
|
||||||||||
| OP% |
9.2 |
% |
1.4 |
% |
7.5 |
% |
7.7 |
% |
||||||||||
| Amortization of intangible assets |
66,813 |
|
33,437 |
|
202,078 |
|
76,929 |
|
||||||||||
| Purchase accounting adjustments |
9,164 |
|
5,673 |
|
43,710 |
|
9,322 |
|
||||||||||
| Acquisition and divestiture-related costs |
30,501 |
|
47,060 |
|
58,788 |
|
61,564 |
|
||||||||||
| Significant litigation matters and settlements |
629 |
|
– |
|
(632 |
) |
– |
|
||||||||||
| Restructuring and other, net |
2,042 |
|
1,624 |
|
24,869 |
|
9,368 |
|
||||||||||
| Pro-Forma deprecation on assets held for sale |
(2,363 |
) |
– |
|
(2,363 |
) |
– |
|
||||||||||
| Adjusted operating income including AES |
164,806 |
|
94,940 |
|
469,097 |
|
271,431 |
|
||||||||||
| Adjusted OP% |
26.0 |
% |
18.5 |
% |
24.7 |
% |
18.3 |
% |
||||||||||
| Diagnostics | Reported revenue |
399,020 |
|
653,805 |
|
1,625,124 |
|
2,222,527 |
|
|||||||||
| Purchase accounting adjustments |
203 |
|
199 |
|
609 |
|
597 |
|
||||||||||
| Adjusted revenue |
399,223 |
|
654,004 |
|
1,625,733 |
|
2,223,124 |
|
||||||||||
| Reported operating income from continued operations |
94,654 |
|
237,903 |
|
553,898 |
|
965,650 |
|
||||||||||
| OP% |
23.7 |
% |
36.4 |
% |
34.1 |
% |
43.4 |
% |
||||||||||
| Amortization of intangible assets |
27,099 |
|
37,517 |
|
95,375 |
|
107,743 |
|
||||||||||
| Purchase accounting adjustments |
457 |
|
5,107 |
|
1,884 |
|
9,485 |
|
||||||||||
| Asset impairment |
– |
|
3,868 |
|
– |
|
3,868 |
|
||||||||||
| Acquisition and divestiture-related costs |
– |
|
2,023 |
|
14,119 |
|
7,833 |
|
||||||||||
| Restructuring and other, net |
1,218 |
|
587 |
|
3,705 |
|
3,650 |
|
||||||||||
| Adjusted operating income |
123,428 |
|
287,005 |
|
668,981 |
|
1,098,229 |
|
||||||||||
| Adjusted OP% |
30.9 |
% |
43.9 |
% |
41.1 |
% |
49.4 |
% |
||||||||||
| Corporate | Reported operating loss |
(16,505 |
) |
(23,079 |
) |
(54,673 |
) |
(57,664 |
) |
|||||||||
| Pro Forma Operating Results including AES | Revenue including AES | $ |
1,032,419 |
|
$ |
1,166,685 |
|
$ |
3,521,430 |
|
$ |
3,702,844 |
|
|||||
| Purchase accounting adjustments |
203 |
|
199 |
|
609 |
|
2,446 |
|
||||||||||
| Adjusted revenue including AES |
1,032,622 |
|
1,166,884 |
|
3,522,039 |
|
3,705,290 |
|
||||||||||
| Operating income including AES |
136,169 |
|
221,970 |
|
641,872 |
|
1,022,234 |
|
||||||||||
| OP% |
13.2 |
% |
19.0 |
% |
18.2 |
% |
27.6 |
% |
||||||||||
| Amortization of intangible assets |
93,912 |
|
70,954 |
|
297,453 |
|
184,672 |
|
||||||||||
| Purchase accounting adjustments |
9,621 |
|
10,780 |
|
45,594 |
|
18,807 |
|
||||||||||
| Acquisition and divestiture-related costs |
30,501 |
|
49,083 |
|
72,907 |
|
69,397 |
|
||||||||||
| Asset impairment |
– |
|
3,868 |
|
– |
|
3,868 |
|
||||||||||
| Significant litigation matters and settlements |
629 |
|
– |
|
(632 |
) |
– |
|
||||||||||
| Restructuring and other, net |
3,260 |
|
2,211 |
|
28,574 |
|
13,018 |
|
||||||||||
| Pro-Forma deprecation on assets held for sale |
(2,363 |
) |
– |
|
(2,363 |
) |
– |
|
||||||||||
| Adjusted operating income including AES | $ |
271,729 |
|
$ |
358,866 |
|
$ |
1,083,405 |
|
$ |
1,311,996 |
|
||||||
| Adjusted OP% |
26.3 |
% |
30.8 |
% |
30.8 |
% |
35.4 |
% |
||||||||||
| REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP | ||||||||||||||||||
| (1) amounts may not sum due to rounding | ||||||||||||||||||
| PerkinElmer, Inc. and Subsidiaries | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | October 2, 2022 | January 2, 2022 | ||||
| Current assets: | ||||||
| Cash and cash equivalents |
$ |
400,741 |
$ |
603,320 |
||
| Accounts receivable, net |
|
540,867 |
|
707,941 |
||
| Inventories, net |
|
378,256 |
|
425,890 |
||
| Other current assets |
|
138,867 |
|
148,255 |
||
| Current assets of discontinued operations |
|
1,657,749 |
|
555,374 |
||
| Total current assets |
|
3,116,480 |
|
2,440,780 |
||
| Property, plant and equipment, net |
|
460,397 |
|
485,531 |
||
| Operating lease right-of-use assets |
|
160,120 |
|
164,040 |
||
| Intangible assets, net |
|
3,401,143 |
|
3,821,847 |
||
| Goodwill |
|
6,373,327 |
|
6,627,119 |
||
| Other assets, net |
|
312,297 |
|
312,887 |
||
| Long-term assets of discontinued operations |
|
– |
|
1,148,350 |
||
| Total assets |
$ |
13,823,764 |
$ |
15,000,554 |
||
| Current liabilities: | ||||||
| Current portion of long-term debt |
$ |
503,549 |
$ |
4,240 |
||
| Accounts payable |
|
275,824 |
|
324,811 |
||
| Accrued expenses and other current liabilities |
|
471,570 |
|
728,445 |
||
| Current liabilities of discontinued operations |
|
234,788 |
|
156,248 |
||
| Total current liabilities |
|
1,485,731 |
|
1,213,744 |
||
| Long-term debt |
|
3,898,267 |
|
4,979,737 |
||
| Long-term liabilities |
|
1,231,724 |
|
1,413,196 |
||
| Operating lease liabilities |
|
142,842 |
|
147,395 |
||
| Long-term liabilities of discontinued operations |
|
– |
|
105,237 |
||
| Total liabilities |
|
6,758,564 |
|
7,859,309 |
||
| Total stockholders’ equity |
|
7,065,200 |
|
7,141,245 |
||
| Total liabilities and stockholders’ equity |
$ |
13,823,764 |
$ |
15,000,554 |
||
| PREPARED IN ACCORDANCE WITH GAAP | ||||||
| PerkinElmer, Inc. and Subsidiaries | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | |||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||
| Operating activities: | ||||||||||||||||
| Net income |
$ |
85,347 |
|
$ |
127,738 |
|
$ |
441,521 |
|
$ |
752,973 |
|
||||
| Income from discontinued operations and dispositions, net of income taxes |
|
(15,839 |
) |
|
(20,107 |
) |
|
(26,342 |
) |
|
(47,626 |
) |
||||
| Income from continuing operations |
|
69,508 |
|
|
107,631 |
|
|
415,179 |
|
|
705,347 |
|
||||
| Adjustments to reconcile income from continuing operations to net cash provided by continuing operations: | ||||||||||||||||
| Stock-based compensation |
|
10,112 |
|
|
5,835 |
|
|
39,776 |
|
|
16,718 |
|
||||
| Restructuring and other, net |
|
2,774 |
|
|
2,011 |
|
|
15,443 |
|
|
10,517 |
|
||||
| Depreciation and amortization |
|
104,736 |
|
|
76,146 |
|
|
322,766 |
|
|
197,386 |
|
||||
| Change in fair value of contingent consideration |
|
(2,132 |
) |
|
1,076 |
|
|
(769 |
) |
|
1,553 |
|
||||
| Amortization of deferred debt financing costs and accretion of discounts |
|
2,194 |
|
|
1,500 |
|
|
6,046 |
|
|
3,224 |
|
||||
| Change in fair value of financial securities |
|
5,106 |
|
|
19,365 |
|
|
14,321 |
|
|
(8,566 |
) |
||||
| Debt extinguishment income |
|
(580 |
) |
|
– |
|
|
(92 |
) |
|
– |
|
||||
| Amortization of acquired inventory revaluation |
|
11,315 |
|
|
9,425 |
|
|
45,039 |
|
|
14,728 |
|
||||
| Gain on disposition of businesses and assets, net |
|
– |
|
|
(1,970 |
) |
|
– |
|
|
(1,970 |
) |
||||
| Asset impairment |
|
– |
|
|
3,868 |
|
|
– |
|
|
3,868 |
|
||||
| Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired: | ||||||||||||||||
| Accounts receivable, net |
|
28,637 |
|
|
87,718 |
|
|
93,092 |
|
|
224,162 |
|
||||
| Inventories |
|
(19,996 |
) |
|
7,796 |
|
|
(61,632 |
) |
|
14,683 |
|
||||
| Accounts payable |
|
(16,429 |
) |
|
(9,358 |
) |
|
(24,314 |
) |
|
(40,009 |
) |
||||
| Accrued expenses and other |
|
(72,496 |
) |
|
(20,787 |
) |
|
(338,223 |
) |
|
(168,949 |
) |
||||
| Net cash provided by operating activities of continuing operations |
|
122,749 |
|
|
290,256 |
|
|
526,632 |
|
|
972,692 |
|
||||
| Net cash provided by operating activities of discontinued operations |
|
37,205 |
|
|
23,539 |
|
|
14,020 |
|
|
102,466 |
|
||||
| Net cash provided by operating activities |
|
159,954 |
|
|
313,795 |
|
|
540,652 |
|
|
1,075,158 |
|
||||
| Investing activities: | ||||||||||||||||
| Capital expenditures |
|
(13,095 |
) |
|
(26,365 |
) |
|
(59,502 |
) |
|
(59,066 |
) |
||||
| Purchases of investments |
|
(17,765 |
) |
|
(4,623 |
) |
|
(45,010 |
) |
|
(19,130 |
) |
||||
| Proceeds from notes receivables |
|
8,890 |
|
|
– |
|
|
8,890 |
|
|
– |
|
||||
| Proceeds from disposition of businesses and assets |
|
4,610 |
|
|
1,460 |
|
|
5,664 |
|
|
1,460 |
|
||||
| Cash paid for acquisitions, net of cash acquired |
|
(1,884 |
) |
|
(3,264,981 |
) |
|
(7,768 |
) |
|
(3,967,678 |
) |
||||
| Net cash used in investing activities of continuing operations |
|
(19,244 |
) |
|
(3,294,509 |
) |
|
(97,726 |
) |
|
(4,044,414 |
) |
||||
| Net cash used in investing activities of discontinued operations |
|
(3,263 |
) |
|
(6,419 |
) |
|
(9,441 |
) |
|
(8,393 |
) |
||||
| Net cash used in investing activities |
|
(22,507 |
) |
|
(3,300,928 |
) |
|
(107,167 |
) |
|
(4,052,807 |
) |
||||
| Financing Activities: | ||||||||||||||||
| Payments on borrowings |
|
– |
|
|
(427,580 |
) |
|
(220,000 |
) |
|
(1,191,125 |
) |
||||
| Proceeds from borrowings |
|
– |
|
|
415,282 |
|
|
220,000 |
|
|
1,144,282 |
|
||||
| Payments of term loan |
|
(50,000 |
) |
|
– |
|
|
(500,000 |
) |
|
– |
|
||||
| Proceeds from term loan |
|
– |
|
|
500,000 |
|
|
– |
|
|
500,000 |
|
||||
| Payments of senior debt |
|
(7,472 |
) |
|
– |
|
|
(7,472 |
) |
|
(339,605 |
) |
||||
| Proceeds from sale of senior debt |
|
– |
|
|
2,286,239 |
|
|
– |
|
|
3,086,095 |
|
||||
| Payments of debt financing costs |
|
– |
|
|
(22,741 |
) |
|
– |
|
|
(30,983 |
) |
||||
| Settlement of cash flow hedges |
|
– |
|
|
4,477 |
|
|
(762 |
) |
|
(1,459 |
) |
||||
| Net payments on other credit facilities |
|
343 |
|
|
(905 |
) |
|
(487 |
) |
|
(12,731 |
) |
||||
| Proceeds from issuance of common stock under stock plans |
|
413 |
|
|
8,575 |
|
|
6,254 |
|
|
22,760 |
|
||||
| Purchases of common stock |
|
(89 |
) |
|
(89 |
) |
|
(56,137 |
) |
|
(73,013 |
) |
||||
| Dividends paid |
|
(8,835 |
) |
|
(7,842 |
) |
|
(26,502 |
) |
|
(23,539 |
) |
||||
| Net cash (used in) provided by financing activities of continuing operations |
|
(65,640 |
) |
|
2,755,416 |
|
|
(585,106 |
) |
|
3,080,682 |
|
||||
| Net cash (used in) provided by financing activities of discontinued operations |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Net cash (used in) provided by financing activities |
|
(65,640 |
) |
|
2,755,416 |
|
|
(585,106 |
) |
|
3,080,682 |
|
||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(17,427 |
) |
|
(5,925 |
) |
|
(51,404 |
) |
|
(16,584 |
) |
||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
54,380 |
|
|
(237,642 |
) |
|
(203,025 |
) |
|
86,449 |
|
||||
| Cash, cash equivalents, and restricted cash at beginning of period |
|
361,932 |
|
|
726,704 |
|
|
619,337 |
|
|
402,613 |
|
||||
| Cash, cash equivalents, and restricted cash at end of period |
$ |
416,312 |
|
$ |
489,062 |
|
$ |
416,312 |
|
$ |
489,062 |
|
||||
| Supplemental disclosure of cash flow information: | ||||||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: | ||||||||||||||||
| Cash and cash equivalents |
$ |
400,741 |
|
$ |
472,374 |
|
$ |
400,741 |
|
$ |
472,374 |
|
||||
| Restricted cash included in other current assets |
|
284 |
|
|
1,689 |
|
|
284 |
|
|
1,689 |
|
||||
| Restricted cash included in other assets |
|
288 |
|
|
– |
|
|
288 |
|
|
– |
|
||||
| Cash and cash equivalents included in current assets of discontinued operations |
|
14,999 |
|
|
14,999 |
|
|
14,999 |
|
|
14,999 |
|
||||
| Total cash, cash equivalents and restricted cash |
$ |
416,312 |
|
$ |
489,062 |
|
$ |
416,312 |
|
$ |
489,062 |
|
||||
| PREPARED IN ACCORDANCE WITH GAAP | ||||||||||||||||
Contacts
Investor Relations:
Steve Willoughby (781) 663-5677
steve.willoughby@perkinelmer.com
Media:
Fara Goldberg (781) 663-5699
fara.goldberg@perkinelmer.com